TAL Education Group · NYSE:TAL
TAL Education — Investor Presentation (January 2019)
16 slides from TAL Education's investor presentation, January 2019
Slide 1: TAL Education Group Investor Presentation
TAL TAL Education Group Investor Presentation January 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by TAL Education Group (the “Company”) solely for informational purposes and does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into inv
Slide 3: Mission, Vision and Values of TAL
Mission, Vision and Values of TAL Advancing Education through Science and Mission Technology Vision To be a respectable education institution Customer Orientation, Pragmatism, Innovation, Values Cooperation 2
Slide 4: Company Highlights
Company Highlights Industry Leader in Large and Attractive Market Strong Brand, Recognized for High Quality Teaching, Proprietary Content, and Student Outcomes Significant Scale and Reach Offline and Online Strong Operational Performance with Consistent Growth High Visibility Recurring Revenue Model
Slide 5: What We Do
What We Do Comprehensive Tutoring Service Offering We develop multi-subject, multi-year relationships with our students We Cover Core Subjects in the K-12 School Curriculum 1 Primary School Middle School High School K 1 2 3 4 5 6 7 8 9 10 11 12 Mathematics English Chinese Physics Chemistry Biology P
Slide 6: Reform of College Entrance Examination Creates New Opportunities
Reform of College Entrance Examination Creates New Opportunities Examination-Focused Education System Examination-Focused Education System 1 “3+Comprehensive Exam” to “3+3” Higher College Entrance 3+Comprehensive Exam: Choose Examination Education – “Gao Kao” between Comprehensive Liberal Arts and C
Slide 7: Based Upon High Teaching Quality and Differentiated Proprietary Content
Based Upon High Teaching Quality and Differentiated Proprietary Content Optimized Teacher Management System Selective Hiring Comprehensive Rigorous Evaluation Process Training Process • Top university graduates • Comprehensive new teacher • Continuous evaluation • Rounds of tests and interviews trai
Slide 8: Straightforward Strategy to Expand Scale Both Offline and Online
Straightforward Strategy to Expand Scale Both Offline and Online Growth Strategy 1 Further penetrate existing markets by opening new learning centers 2 Enter new markets: Target to enter new cities each year 3 Enhance content offering across subjects and grade levels 4 Maintain premium pricing while
Slide 9: Online and Mobile Platform Now Covers the Student Lifecycle
Online and Mobile Platform Now Covers the Student Lifecycle Minority Strategic Investment Main portal to TAL Education’s education-related platform Social platform Preschool, English Mathematics, Preparation for Preparation for Preparation for for expecting kindergarten, language study competitions,
Slide 10: Large Untapped Geographic Expansion Opportunity
Large Untapped Geographic Expansion Opportunity Incremental Center Opportunities # of Small Class Centers # of Small Class Centers # of # of # of Total # of # of # of # of Total Year of # of # of # of One-on- Year of One-on- City Learning City Peiyou Firstleap Mobby Learning Entry Peiyou Firstleap M
Slide 11: Ongoing Progress Since IPO in Fiscal Year 2011
Ongoing Progress Since IPO in Fiscal Year 2011 Expanding Scale Increasing Geographical Footprint # of Student Enrollments # of Learning Centers +2662% % of Xueersi Peiyou Small Class Revenue Generated Outside Top Five Cities 2,599,180 +484% 44% 666 42% 41% 40% 40% 39% 39% 114 94,100 Q3 FY2011 Q3 FY2
Slide 12: Enrollment Growth Keep Driving Topline Growth
Enrollment Growth Keep Driving Topline Growth Revenue US$MM 1,715 CAGR: 46% 1,043 YoY: +35% 620 586 434 433 314 178 226 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Q3 Q3 FY2018 FY2019 Average Enrollments per Quarter1 ’000s 2,599 YoY: CAGR: 49% +68% 1,862 1,544 984 577 173 204 268 374 FY2012 2 F
Slide 13: Ongoing Investments to Increase Future Growth
Ongoing Investments to Increase Future Growth Gross Profit US$MM 833 CAGR: 47% 521 YoY: +50% 316 318 231 212 162 82 110 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Q3 Q3 FY2018 FY2019 Margin: 46.2% 48.8% 51.7% 53.2% 51.0% 49.9% 48.6% 49.0% 54.3% Operating Income US$MM CAGR: 47% 209 135 YoY: +59
Slide 14: While High Visibility Cash Flows Provide Strength to Balance Sheet
While High Visibility Cash Flows Provide Strength to Balance Sheet Cash, Cash Equivalents, Term Deposits and Short-term Investments Deferred Revenues US$MM US$MM 842 866 1,499 1,612 519 700 289 492 479 103 132 178 199 209 270 86 Feb Feb Feb Feb Feb Feb Feb Nov Feb Feb Feb Feb Feb Feb Feb Nov 29, 28,
Slide 15: Experienced Management Team and Distinguished Board
Experienced Management Team and Distinguished Board Bangxin Zhang: Chairman and CEO since our inception Jane Jie Sun: Audit Committee Chair, Independent Director since Oct 2010, CEO and Director of Ctrip Inc. Weiru Chen: Compensation Committee Chair, Independent Director since June 2015, associate p
Slide 16: Thank You
Thank You Investor Relations Contact: [email protected] +8610 5292 6658 15/F Danling SOHO, No. 6 Danling Street, Haidian District, Beijing 100080
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